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Why compulsory GST registration for small IFA?
No. of Comments: 89
By Sunita Jain, New Delhi, 5314 On 21-Jul-2017
It appears that registration is compulsory for IFAs irrespective of their turnover. According to newspaper reports less than 1000 out of 86000 registered IFAs have a turnover of over Rs.20 lakhs. In general, the threshold limit is Rs.20 lakhs in case of services. Would it not be more efficient to have the reverse charge mechanism apply so that AMC/Mutual Fund deducts the GST before disbursing the commission/brokerage and the IFA need not register under GST, ifhe/she so desires.. The government gets its revenue and the IFA is spared the agony and trouble of filing returns, depositing taxes etc. This was the case with Service tax where service tax used to be deducted at source by the brokerage/commission paying mutual fund. IFAs should send a representation to the authorities concerned. What is your opinion?


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Posted by Suja R Nair on 11-Aug-2017 ARN NO :92183 City :Kottayam
Individual distributors whose commission is below Rs 20 lakhs need not take registration. But the AMC''s has to pay tax on reverse charge basis as per law for the services received from un registered persons. But the companies can take credit of this amount and adjust in the tax payable by them. Therefore the tax payable by the AMCs on reverse charge basis need not be deducted from the commission payable to the tiny IFAs. But the AMC''s are forcing IFAs to take registration so that they will get rid off from the reverse charges and they will also get the benefit of credit of tax paid if the IFA gets themselves registered. So the IFA''s within the limit of 20 lakhs need not take GST registration

Posted by PRAVEEN KUMAR on 02-Aug-2017 ARN NO :15080 City :hyderabad
I AGREE WITH MS.SHIVANI , WE SHOULD GO BEYOND SEBI AND AMFI TO MINISTRY OF FINANCE.RGDS

Posted by APPAJACHAR on 01-Aug-2017 ARN NO :115695 City :BENGALURU
Sir Since AMFI has got all our details including the State we hail from, is it not easy for the AMFI to allot GST also similar to allotment of ARN Code to ease out the cumbersome procedure of individuals doing the registration. Furthermore, it would be a good idea if AMC themselves take the responsibility of deducting and paying it to the Govt. like it is done by LIC.

Posted by Dharmaraj T on 31-Jul-2017 ARN NO :66139 City :Trivandrum
GST on IFA''s small income is like stealing from the beggar''s bowl; which is a very bad system. So, at least those earning less than Rs 20 lakhs of annual brokerage should be exempted from the cumbersome GST procedure.

Posted by Pankaj kumar sharma on 31-Jul-2017 ARN NO :114892 City :Meerut
Not only we should raise the issue with GOI . AMFI and AMC must come forward to resolver the issue as it is in the favour of AMC also

Posted by Hema Thakiur on 30-Jul-2017 ARN NO :119369/6183658 City :Thane
I think GST Registration is not compulsory if turnover is less than Rs.20 lakh. In fact as far as share broking is concerned Securities do not fall under the purview of GST. By turnover it is taken as the transaction amount not the income earned. It is unfair for those who do registrations for doing any business as this is going to be cumbersome, earning will be less still formalities of filing timely, frequent returns will be high. And it will attract penalty if one misses to file the return. What about Advocates who are selling Stamp papers at double the price and no service tax or any other tax is paid by them. Rs.20 lakh turnover criteria needs to be revised upwards.

Posted by P, S.Pradhan on 26-Jul-2017 ARN NO :7956 City :Rourkela
As long as we will not fight unitedly, nobody can save to us.

Posted by Rajnish Srivastava on 25-Jul-2017 ARN NO :116819 City :Agartala
It should be exempt from GST whose brokerage less than 20Lakhs

Posted by Shivani on 25-Jul-2017 ARN NO :116134 City :Delhi
Hello Friends.... Greetings of the day. So I have read almost all messages. And yes we are all feeling bad about this GST development with regard to small IFAs. Almost every one is having the same issues. Raising our voice on this platform is not sufficient and I feel we must give a collective representation regarding this issue to our Finance Minister. We can take up this issue on his twitter account, may be our concerns will come in his notice and we can take up from there. some of us can come forward and take this matter to next level collectively.

Posted by AJAY SINGH on 25-Jul-2017 ARN NO :119065 City :Harpalpur
GST Main Kya karu

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